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The impact of brand credibility on consumer price sensitivity:
Brands can affect various stages of consumer choice processes, and hence, various components of consumer utility functions. Previous conceptual and empirical work focused on the effects of brands on consumer perceptions of tangible and intangible product attributes. In this paper, we extend the work on brand effects with information economics underpinnings to analyze whether consumer price sensitivity, that is, the weight attached to price in a consumer valuation of a product’s overall attractiveness or utility, is impacted by brand credibility.